A Model for Forecasting a Multiple-Location, Growing Business
Veteran valuation expert Gary Trugman (Trugman Valuation) had an engagement that involved a business that operated a franchise with multiple locations—and was required to open a lot more. This article shows in detail how he did the forecasting.
Embracing the Hockey Stick: Alternative Approaches to Formulating and Assessing Projections
The question of projections may be one of the most challenging elements of a business or intellectual property appraisal. Most business appraisers will be placed in a position of assessing projections, including projections another appraiser provided. Join Michael Blake for an exploration of the quantitative and empirical methodologies for creating and/or validating projections. As a result of this class, you will gain exposure to potentially new tools to help make your projections more robust and ...
In Search of a Steady State: Inflation, Interest Rates and Value, The (inflation) Genie Escapes the Bottle!
In this very special complimentary program with BVR, renowned financial guru Aswath Damodaran looks at where inflation expectations stand and where inflation might end up – from the potentially catastrophic to the (mostly) benign. Inflation is the culprit behind markets approaching bipolar territory with their big ups and downs, and it remains a highly unpredictable macroeconomic factor.
Justifying hockey-stick projections
Valuation experts frequently receive from management what may appear to be an unrealistic forecast that starts off modestly but shoots up in future years as if by magic.
Examining the ‘Reasonably Objective Basis’ Concept for Projections
Recent developments have raised the bar with respect to how valuation analysts document financial projections and forecasts with regard to a “reasonably objective basis.” But what exactly is this concept and where can analysts look for specific guidance.
Embracing the Hockey Stick: Alternative Approaches to Formulating and Assessing Projections
The question of projections may be one of the most challenging elements of a business or intellectual property appraisal. Most business appraisers will be placed in a position of assessing projections, including projections another appraiser provided. Join Michael Blake for an exploration of the quantitative and empirical methodologies for creating and/or validating projections. As a result of this class, you will gain exposure to potentially new tools to help make your projections more robust and ...
Forecasting: Removing Rose Colored Glasses
Projections are commonly relied on for business valuations, lost profits analyses, reorganization plans, and a host of other projects within litigation. Using forensic accounting analysis, the speaker will address “rose-colored” projections and how to work with them. Expert Josh Shilts will discuss how to increase confidence levels of projections using macro and micro market data along with statistical analysis.
What do auditors expect from business valuation forecasts during COVID-19?
Auditors around the globe will be expecting multiple forecast scenarios in reports from their valuation experts.
PwC survey: CFOs become less optimistic about recovery time
“Hopes that the outbreak will dissipate quickly are receding,” according to the PwC COVID-19 CFO Pulse Survey.
Top five business valuation tips from recent training webinars
As a busy business valuation professional, you may not always have the time to attend training events. We’ve compiled the top five tips from recent BVR webinars on the most timely and important topics in the profession.
Small Businesses, Big Challenges: Navigating Main Street Valuations
There can be a lot of potholes and speed bumps in Main Street business valuation. With limited financial information, key-person data, and possible discount issues—all compounded by fee pressure—many professionals avoid working with smaller businesses. Join valuation expert Pasquale Rafanelli as he tackles the unique opportunities that working with small business offer. Learn about the market trends and key attributes that drive value and cruise through your next small-business valuation engagement.
Getting Better Probability Estimates From Your Clients: A Practical Approach
Getting clients to provide probability estimates is a part of many valuation engagements but is one of the least rigorous and hardest to document and defend estimates in a valuation. In this program, James Walling will help you to understand the hidden bias in most probability estimates and offer a practical method for getting your clients to get past these biases and provide better estimates. This process will also provide a basis for documenting the ...
Prospective Financial Information: Understanding and Applying the New (and Old!) Valuation Guidance
Management-prepared forecasts and projections, collectively referred to as prospective financial information (PFI), serve as the critical foundation for discounted cash flow methods. A recently issued document, "Application of the Mandatory Performance Framework (MPF)," provides suggested guidance for valuation professionals regarding the evaluation and use of PFI. David Dufendach will address key aspects of the new guidance that impact PFI, including the following concepts: professional skepticism, reasonably objective basis, and discount rate derivation.
Management forecasts receive close scrutiny from courts
In assessing the soundness of valuations, courts in a variety of cases have been paying close attention to the management projections appraisers have used or decided not to use in performing their value analyses. If courts are scrutinizing projections for reliability and plausibility, experts hoping to prevail in the litigation context must do so as well.
Tennessee dissenters claim Delaware block method is passé
The use of the Delaware block method in Tennessee recently came under attack in a case involving a closely held Nashville, Tenn.-based media company whose controlling shareholders had pursued a squeeze-out merger and later asked the trial court for a judicial appraisal of the dissenting shareholders' interest.
Defense expert testimony supports ESOP valuation and fairness opinions
A recent ESOP decision involving allegations of breach of fiduciary duty and engaging in a prohibited transaction turned on whether the ESOP trustee’s financial advisor had performed proper due diligence and issued defensible fairness and valuation analyses.
Chancery achieves fair value with three imperfect valuation techniques
The whole is greater than the sum of its parts. Perhaps Chancellor Bouchard thought of Aristotle when he recently ruled in a statutory appraisal action that, even though the results of three common valuation techniques were unreliable indicators of value, in combination they established fair value.